PROPOSED COPYRIGHT RULE PROMPTS REQUEST FOR ROYALTY PANEL ACTION
Responding to Dec. 7 Copyright Office order squelching proposed settlement for royalty fees applicable to online streaming of radio programs, broadcasters and recording industry Wed. asked rate-setting panel to back their agreement. Move came during Copyright Arbitration Royalty Panel (CARP) convened to set rates covering digital performance rights in sound and ephemeral recordings for both Webcasters and FCC-licensed broadcasters who streamed their radio shows on Internet. CARP arbitrators are to submit their report Feb. 20.
Sign up for a free preview to unlock the rest of this article
Communications Daily is required reading for senior executives at top telecom corporations, law firms, lobbying organizations, associations and government agencies (including the FCC). Join them today!
On Dec. 14, both sides asked Copyright Office to pull issues related to on-air broadcast streams out of CARP and publish their proposed rates for comment and adoption. They insisted, however, that agreed-upon rates not be revealed to CARP until it set royalty amounts for Webcasts. In its Dec. 7 order, Copyright Office said that although copyright law encouraged parties to settle rate disputes, no statute or regulation provided for negotiation and settlement of rates after CARP had been empaneled. Therefore, office said, it proposed to issue interim rule setting out procedures governing adoption of settlement during 180-day CARP arbitration period.
That proposal was rejected by both parties, office said in its order. Broadcasters worried that Copyright Office would somehow disclose terms of agreement to CARP before it issued its final report. Content owners were less specific about their concerns, office said, but said that whatever problems there were in office’s proposal could have serious implications not only for current CARP but for future ones.
Given parties’ opposition, office said, there was no use in issuing proposed interim regulation, so it would agree with copyright owners that AM/FM streaming rate must be fixed by CARP: “Of course, the parties are free to make a joint submission to the CARP urging that it adopt rates upon which they have agreed, but the CARP would have to know what those rates are in order to adopt them.” Office then directed CARP to retain jurisdiction over all AM/FM streaming issues.
Content owners and broadcasters urged CARP Wed. to set procedure to review and adopt their agreed rates -- but only after it resolved remaining issues in case. Parties are willing to submit copy of their proposed accord to CARP if arbitrators believe it’s necessary for their decision, they wrote. They also are prepared, they said, to hand over sealed copies of agreed-upon rates “if, as and when the CARP decides… that it is willing to observe the above-described agreement as to timing that is an essential element of the [agreement].”
Issue now is in CARP’s hands, Copyright Office attorney said. Arbitrators are expected to meet with parties today (Fri.), she said.